Mercury News editorial: Vote no on boosting San Jose's minimum wage

Mercury News Editorial

Posted:
09/06/2012 01:12:46 PM PDT

Updated:
09/06/2012 07:27:21 PM PDT

Click photo to enlarge

San Jose State University student, Brooke Wayne (center) collects signatures from students, Eyerusalem Yilma (cq) (l) and Yet Dagne (cq) (r) on campus during a petition drive to raise the minimum wage in San Jose, Calif. on Thursday, Feb. 16, 2012. Students from a social action class launched the petition drive today to raise the minimum wage in San Jose from $8 to $10 per hour. The ballot petition has been certified and the students will have three months to collect the signatures to qualify the measure for the November ballot. (Gary Reyes/ Staff)

Thus begins the argument for Measure D on the city's November ballot to raise the minimum wage from the statewide minimum, $8, to $10. Yes, of course it's too little to live on. But the proposal that San Jose State students and the South Bay Labor Council are championing for San Jose, and only San Jose, is a bad idea on many levels. Vote no on Measure D.

It would place a city already struggling to add jobs at a disadvantage to its neighbors -- not because desirable employers provide mostly minimum wage jobs, but because of what it says about the cost of doing business in general. And it would challenge some small businesses already on the edge to stay viable.

In this valley, and much of the nation, the minimum wage does not support a family. Its purpose is to protect people from exploitation in entry-level jobs, and it assumes good workers will go on to higher pay. It is important, and California's minimum has fallen behind inflation. The state should take it up. But passing different minimums city by city is a bad idea, and it's especially bad for a city that needs more economic development. San Jose has to restore deep cuts to public safety and other services.

There are additional problems with this measure that might have been moderated if it had been debated in a legislative setting. One is the jump from $8 to $10 all at once, an immediate 25 percent hike with no exceptions for existing contracts or other factors.

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Measure D also provides an annual increase in the minimum wage based on a Consumer Price Index. Statewide, and with an escape clause for extraordinary circumstances, this could work. But think of all the companies and governments that have asked employees to take pay cuts in recent years. Increasing the minimum wage would further put San Jose businesses at an awkward disadvantage.

San Francisco has its own $10.24 minimum and has suffered no ill effects. But it has few neighboring cities and a tourist economy like no other in the region. Its urban character makes it attractive for companies seeking to attract young talent. People put up with all kinds of higher costs there -- don't get us started on parking -- that ignite outrage if San Jose hints at them.

San Jose makes up about half the population of Santa Clara County and houses the majority of its low-income residents. It needs to stay competitive or companies will gravitate to neighboring cities that are more business-friendly.

Measure D has a noble purpose, and we don't doubt the sincerity of its college student sponsors. But it will be bad for San Jose residents, including, over time, its poorest. Vote no.